Rajputana Biodiesel IPO: GMP Rises To Rs 80 Per Share Ahead Of Nov. 26 Launch

Rajputana Biodiesel Ltd. is set to launch its initial public offering on Nov. 26. The stock's latest grey market premium indicates a listing gain of 61.54% at the upper end of the price band, ahead of the opening of the NSE SME issue.

Rajputana Biodiesel IPO GMP stood at Rs 80 per share as of 1:24 p.m. on Nov. 25, according to InvestorGain. The latest GMP projects a strong listing issue price. The listing price of the issue is expected to be Rs 210 per share.

Since the Rajputana Biodiesel IPO shares started trading in the grey market on Nov. 19, the GMP has increased from Rs 21 to Rs 80 per share in nearly a week.

Investors must note that an IPO GMP is not the official stock price and it just indicates the anticipated listing price of a stock. It is based on speculation.

The Rajputana Biodiesel IPO subscription will open on Nov. 26. The three-day bidding window will close on Nov. 28.

Rajputana Biodiesel IPO's share allotment status is likely to be finalised on Nov. 29.

Shares of Rajputana Biodiesel are expected to be listed on the NSE SME platform, Emerge, on Dec. 3.

The price band of the issue has been set at Rs 123 to Rs 130 per share. Retail investors can apply for at least a single lot size of 1,000 shares, amounting to a minimum investment of Rs 1,30,000.

The Rs 24.7-crore book-building issue comprises an entirely fresh issuance of 19 lakh shares. 

Maashitla Securities Pvt. is the registrar for the issue, while GYR Capital Advisors Pvt. is the book running lead manager of the IPO.

The company proposes to utilise the proceeds of the IPO to provide a loan to its subsidiary Nirvaanraj Energy Pvt. for capital expenditure on expanding its existing facilities. A portion of the funds will also be used for the company’s working capital requirements and general corporate purposes.

Established in 2016, Rajputana Biodiesel Ltd. specialises in the production and supply of biofuels and their by-products, including glycerine and fatty acids. Its product portfolio includes bio-diesel, crude glycerin, caustic potash flakes, waste sludge, used cooking oil, esterified fatty acid, methanol, citric acid, refined rice oil, crude sunflower oil, sodium methoxide and RBD palm sterin.

The company has a production facility located in Phulera, Rajasthan, spanning 4,000 square meters. As of July 31, 2024, the company had 30 permanent employees.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.